| |
| |
| Preface | |
| |
| |
| |
| The Basis for Foreign Exchange Activity | |
| |
| |
| |
| What Is Foreign Exchange? | |
| |
| |
| Why Foreign Exchange Occurs | |
| |
| |
| Factors That Have Contributed to Foreign Exchange Volume Growth | |
| |
| |
| |
| A Historical Perspective of the FX Markets | |
| |
| |
| |
| Historical Development of Foreign Exchange | |
| |
| |
| A Historical Perspective | |
| |
| |
| The Bretton Woods Accord | |
| |
| |
| Why the Bretton Woods Accord Failed | |
| |
| |
| After Bretton Woods | |
| |
| |
| The Free-Floating Foreign Exchange Markets | |
| |
| |
| FX Events | |
| |
| |
| |
| The European Monetary Union | |
| |
| |
| Historical Background | |
| |
| |
| The European Monetary System | |
| |
| |
| The European Central Bank (ECB) | |
| |
| |
| Conclusion | |
| |
| |
| |
| Inside the World of Foreign Exchange | |
| |
| |
| |
| Currency Characteristics | |
| |
| |
| The ISO Codes | |
| |
| |
| The U.S. Dollar | |
| |
| |
| The Euro | |
| |
| |
| The Japanese Yen | |
| |
| |
| The British Pound | |
| |
| |
| The Swiss Franc | |
| |
| |
| The Major Foreign Exchange Markets | |
| |
| |
| The Major Players | |
| |
| |
| Conclusion | |
| |
| |
| |
| Foreign Exchange Risks | |
| |
| |
| Exchange Rate Risk | |
| |
| |
| Interest Rate Risk | |
| |
| |
| Credit Risk | |
| |
| |
| Country Risk | |
| |
| |
| Conclusion | |
| |
| |
| |
| Central Banks | |
| |
| |
| The Federal Reserve | |
| |
| |
| The Federal Reserve's Role in Foreign Exchange | |
| |
| |
| An Overview of the Central Banks of the Other G-7 Countries | |
| |
| |
| |
| Price Structure and Foreign Exchange Terminology | |
| |
| |
| Spot Market | |
| |
| |
| Forward Market | |
| |
| |
| Futures Market | |
| |
| |
| Foreign Exchange Terms | |
| |
| |
| |
| Corporate Trading | |
| |
| |
| The Role of Foreign Exchange for Corporations | |
| |
| |
| Types of Corporations | |
| |
| |
| Types of Exposure | |
| |
| |
| Hedging | |
| |
| |
| How Foreign Exchange Is Executed | |
| |
| |
| Different Points of View | |
| |
| |
| |
| Foreign Exchange Settlement | |
| |
| |
| The Role of the Back Office | |
| |
| |
| Nostro Accounts | |
| |
| |
| Swift | |
| |
| |
| Fedwire | |
| |
| |
| Continuous Linked Settlement | |
| |
| |
| Conclusion | |
| |
| |
| |
| Conducting Foreign Exchange Trading | |
| |
| |
| Electronic Platform Trading | |
| |
| |
| The Brokers' Market | |
| |
| |
| Direct Dealing | |
| |
| |
| Electronic Platform Trading for Retail Clients | |
| |
| |
| Conclusion | |
| |
| |
| |
| Understanding the Major FX Instruments | |
| |
| |
| |
| The Spot Market | |
| |
| |
| The Foreign Currency Spot Marketplace | |
| |
| |
| Profit and Loss | |
| |
| |
| Conclusion | |
| |
| |
| |
| The Forward Currency Market | |
| |
| |
| The Forward Foreign Currency Marketplace | |
| |
| |
| General Characteristics of the Forward Market | |
| |
| |
| The Forward Price | |
| |
| |
| Introduction to the Types of Forward Spreads | |
| |
| |
| Methods of Calculating the Forward Outright Prices | |
| |
| |
| The Interest Rate Differential | |
| |
| |
| Currency Forward Outright Deals | |
| |
| |
| Currency Swaps | |
| |
| |
| The Rollover or Tom/Next Swap | |
| |
| |
| Coverage Interest Rate Arbitrage | |
| |
| |
| |
| Currency Crosses | |
| |
| |
| The Cross Foreign Currency Marketplace | |
| |
| |
| Price Calculation | |
| |
| |
| Relative Strength of a Currency | |
| |
| |
| Trading Components | |
| |
| |
| Position Calculation | |
| |
| |
| Calculation of the Cross Profit and Loss | |
| |
| |
| |
| Currency Futures | |
| |
| |
| The Currency Futures Marketplace | |
| |
| |
| The International Monetary Market | |
| |
| |
| Characteristics of Currency Futures | |
| |
| |
| The Look of Currency Futures | |
| |
| |
| Futures Market and Cash Market: Comparisons | |
| |
| |
| Margins | |
| |
| |
| Contract Size | |
| |
| |
| Trading | |
| |
| |
| Mark-to-Market | |
| |
| |
| Arbitrage | |
| |
| |
| Exchange for Physical (EFP) | |
| |
| |
| Regulation in the United States | |
| |
| |
| Conclusion | |
| |
| |
| |
| Currency Options | |
| |
| |
| The Currency Options Marketplace | |
| |
| |
| Benefits of Trading Options | |
| |
| |
| Where Currency Option Are Traded | |
| |
| |
| Premium | |
| |
| |
| Theoretical Models: Factors Determining Option Price | |
| |
| |
| Option Pricing | |
| |
| |
| |
| Major Option Strategies on Currency | |
| |
| |
| Basic Strategies | |
| |
| |
| Compound Strategies | |
| |
| |
| Exotic Options | |
| |
| |
| Average Options | |
| |
| |
| Conclusion | |
| |
| |
| |
| Foreign Exchange Forecasting: Fundamental Analysis | |
| |
| |
| |
| Economic Fundamentals | |
| |
| |
| Economic Fundamentals | |
| |
| |
| Theories of Exchange Rate Determination | |
| |
| |
| Economic Indicators | |
| |
| |
| Industrial Sector Indicators | |
| |
| |
| Construction Data | |
| |
| |
| Inflation Indicators | |
| |
| |
| Balance of Payments | |
| |
| |
| Employment Indicators | |
| |
| |
| Consumer Spending Indicators | |
| |
| |
| Leading Indicators | |
| |
| |
| Conclusion | |
| |
| |
| |
| Financial and Sociopolitical Factors | |
| |
| |
| The Role of Financial Factors | |
| |
| |
| Political Events | |
| |
| |
| Conclusion | |
| |
| |
| |
| Foreign Exchange Forecasting: Technical Analysis | |
| |
| |
| |
| Technical Analysis | |
| |
| |
| The Evolution of Technical Analysis | |
| |
| |
| Types of Charts: A Comparison | |
| |
| |
| Volume and Open Interest | |
| |
| |
| The Channel Line | |
| |
| |
| Retracements Analysis | |
| |
| |
| The Importance of the Long-Term Charts | |
| |
| |
| |
| Trend Reversal Patterns | |
| |
| |
| Head-and-Shoulders | |
| |
| |
| Inverse Head-and-Shoulders | |
| |
| |
| Double Top | |
| |
| |
| Double Bottom | |
| |
| |
| Triple Top and Triple Bottom | |
| |
| |
| V-Formations (Spikes) | |
| |
| |
| Other Patterns | |
| |
| |
| |
| Trend Continuation Patterns | |
| |
| |
| Flag Formation | |
| |
| |
| Pennant Formation | |
| |
| |
| Triangle Formation | |
| |
| |
| Wedge Formation | |
| |
| |
| Rectangle Formation | |
| |
| |
| |
| Formations Unique to Bar Charts for Futures | |
| |
| |
| Gaps | |
| |
| |
| Island Reversals | |
| |
| |
| Key Reversal Days | |
| |
| |
| |
| Point-and-Figure Charting | |
| |
| |
| Typical Chart Formations in Point-and-Figure Charting | |
| |
| |
| Classic Chart Formations in Point-and-Figure Charting | |
| |
| |
| Trend Reversal Formations | |
| |
| |
| Trend Continuation Formations | |
| |
| |
| |
| Candlestick Charting | |
| |
| |
| Benefits of Using Candlesticks | |
| |
| |
| Daily White Candlesticks | |
| |
| |
| Daily Black Candlesticks | |
| |
| |
| One-Day Reversal Patterns | |
| |
| |
| Two-Day Candlestick Combinations | |
| |
| |
| Sakata's Five Methods | |
| |
| |
| |
| Quantitative Trading Methods | |
| |
| |
| Moving Averages | |
| |
| |
| Ichimoku Kinkou-Hyo | |
| |
| |
| |
| Oscillators and Studies | |
| |
| |
| Stochastics | |
| |
| |
| Moving Average Convergence-Divergence (MACD) | |
| |
| |
| Momentum | |
| |
| |
| Relative Strength Index (RSI) | |
| |
| |
| Other Oscillators | |
| |
| |
| Oscillators Wrap-Up | |
| |
| |
| Other Studies | |
| |
| |
| |
| W. D. Gann Analysis | |
| |
| |
| Geometric Forms | |
| |
| |
| Geometric Angles | |
| |
| |
| Geometric Ratios | |
| |
| |
| The Squaring of Price and Time | |
| |
| |
| The Cardinal Square | |
| |
| |
| Gann's 28 Trading Rules | |
| |
| |
| |
| The Elliott Wave | |
| |
| |
| Basics of Wave Analysis | |
| |
| |
| Impulse Waves-Variations | |
| |
| |
| Diagonal Triangles | |
| |
| |
| Failures (Truncated Fifths) | |
| |
| |
| Fibonacci Analysis | |
| |
| |
| Further Study | |
| |
| |
| Conclusion | |
| |
| |
| |
| World Currencies and Their Swift Codes | |
| |
| |
| |
| U.S. Council on International Banking Compensation and Indemnity and Compensation Rules | |
| |
| |
| Glossary | |
| |
| |
| Bibliography | |
| |
| |
| Index | |